Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 10 - Section 10.2 - Assess Your Understanding - Applying the Concepts - Page 494: 30

Answer

$P$-value $\lt α$: null hypotheses is rejected. There is significant evidence to conclude that more than 7.8% of working Americans have a travel time to work that is more than 60 minutes.

Work Step by Step

$H_0:~p=0.078$ versus $H_1:~p\gt0.078$ $np(1-p)=80\times0.078(1-0.078)=5.75328\lt10$ Test hypotheses with a small sample size: $P$-value $=P(X\geq11)=1-P(X\lt11)=1-P(X\leq10)$ In order to find $P(X\leq10)$ use Excel: "=BINOMDIST(10;80;0.078;TRUE)" $P$-value $=1-P(X\leq10)=1-0.9539=0.0461$ Since $P$-value $\lt α$, we reject the null hypotheses.
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